Correlation Between Agricultural Bank and Fujian Anjoy
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By analyzing existing cross correlation between Agricultural Bank of and Fujian Anjoy Foods, you can compare the effects of market volatilities on Agricultural Bank and Fujian Anjoy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Agricultural Bank with a short position of Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Fujian Anjoy.
Diversification Opportunities for Agricultural Bank and Fujian Anjoy
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Agricultural and Fujian is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy Foods and Agricultural Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Agricultural Bank of are associated (or correlated) with Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Agricultural Bank and Fujian Anjoy
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.96 times more return on investment than Fujian Anjoy. However, Agricultural Bank of is 1.04 times less risky than Fujian Anjoy. It trades about -0.22 of its potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.43 per unit of risk. If you would invest 525.00 in Agricultural Bank of on October 25, 2024 and sell it today you would lose (32.00) from holding Agricultural Bank of or give up 6.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Agricultural Bank |
| Fujian Anjoy Foods |
Agricultural Bank and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Fujian Anjoy
The main advantage of trading using opposite Agricultural Bank and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Fujian Anjoy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fujian Anjoy will offset losses from the drop in Fujian Anjoy's long position.| Agricultural Bank vs. Bank of China | Agricultural Bank vs. Kweichow Moutai Co | Agricultural Bank vs. PetroChina Co Ltd | Agricultural Bank vs. Bank of Communications |
| Fujian Anjoy vs. Shenwu Energy Saving | Fujian Anjoy vs. GRG Banking Equipment | Fujian Anjoy vs. Aba Chemicals Corp | Fujian Anjoy vs. Yingde Greatchem Chemicals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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